Taiwan Is Becoming the Trigger Point for a US-China Confrontation


Posted originally on May 13, 2026 by Martin Armstrong |  

The decision by Taiwan to deploy U.S.-supplied HIMARS missile systems to islands sitting directly off the coast of China is one of the most dangerous escalations we have seen in the region so far. These launch systems are reportedly being positioned less than 30 miles from the Chinese mainland in an effort to create what officials are calling a defensive “dead zone.”

The HIMARS systems are capable of launching ATACMS tactical missiles with ranges approaching 300 kilometers, meaning they could strike military bases, logistics hubs, naval staging areas, and infrastructure deep along China’s southeastern coast within minutes. Some reports estimate missiles launched from islands such as Dongyin could reach PLA targets in roughly seven minutes.

I have warned repeatedly that war with China is becoming one of the primary geopolitical concerns moving into this period ahead. The economic relationship between the United States and China has already deteriorated into technological warfare, sanctions, tariffs, and military positioning across the Pacific. Taiwan is becoming the focal point where all of those tensions converge.

The numbers alone show how rapidly this situation is escalating. Taiwan has already acquired 11 HIMARS launchers from the United States, with dozens more expected as part of broader military packages worth billions of dollars. Additional sales include hundreds of ATACMS missiles and guided rocket systems. At the same time, the U.S. continues pressuring Taiwan to increase military spending dramatically, with discussions around supplementary defense budgets exceeding 40 billion dollars.

What many fail to understand is that China views Taiwan not as a distant geopolitical issue, but as a core national sovereignty question. Every new weapons deployment near the mainland strengthens the nationalist position inside China and makes compromise politically impossible. Instead of reducing the risk of war, these deployments increase domestic pressure on Beijing to respond aggressively.

The United States believes creating heavily armed island chains throughout the Pacific will deter China militarily. But from Beijing’s perspective, this looks like encirclement. Historically, great powers do not tolerate hostile missile systems positioned directly off their coastline indefinitely. The United States itself nearly went to nuclear war during the Cuban Missile Crisis over Soviet missiles positioned near Florida. Yet Washington now appears shocked that China reacts aggressively to missile deployments near its own territory.

China has already been conducting increasingly large military exercises around Taiwan involving warships, fighter aircraft, drones, and simulated blockades. PLA aircraft now enter Taiwan’s air defense zone almost continuously, and Chinese military drills have repeatedly simulated strikes on infrastructure and energy facilities.

At the same time, China is rapidly advancing military technology specifically geared toward a Taiwan conflict, including AI-powered drone swarms, amphibious assault preparation, and missile systems designed to overwhelm island defenses.

Meanwhile, the economic consequences are barely being discussed. Taiwan sits at the center of global semiconductor production and critical shipping routes. Any military conflict in the Taiwan Strait would send shockwaves through global supply chains far beyond anything seen during previous disruptions. The world economy is already under pressure from debt, inflation, and energy instability. A Pacific conflict involving China would magnify all of those problems simultaneously.

The more the United States militarizes Taiwan, the more China will feel compelled to respond militarily itself. Once both sides lock into that trajectory, reversing course becomes extremely difficult. History shows that major conflicts are often not started intentionally. They emerge gradually through escalation, positioning, and miscalculation until neither side can politically afford to back down.

Is Peace Really Possible in Middle East?


Posted originally on May 13, 2026 by Martin Armstrong |  

IRAN ECM

QUESTION: Mr. Armstrong, your computer forecast the collapse of Russia. You even forecast a war would begin in Ukraine. Your computer did the same in Romania and Syria. You even forecast that this war with Iran would not be quick but drawn out. The word is you know the Middle East because you have been there for decades and you managed money for the counter-revolutionary movement in Iran. You have said you were called in by the central bank of Lebanon. They say you attended OPEC meetings and managed money for Kaddafi. In London I was told you taught the Arabs how to trade gold futures. Is any of that True? If so, why does major media avoid you? I listened to the 60 Mimutes interview of Netanyahu and they staid nobody has ever forecast these wars. They glassed over his claims that Iran was developing a nuke and could strike the US, but admitted they did not have a missile to go 6,000 miles. The one they did shoot at the US base 2,000 away was shot down.

If this is all true, then nobody is more qualified than you on the Middle East. You said in a recent interview you had offices in Dubai. Very strange how mainstream media does backflips to avoid you and your computer. What do you see for peace in the Middle East?

FB

FT June 27 1998 Rouble

ANSWER: Yes, the computer has done  fantastic job. It was the Russian collapse that cause all the Trouble, That’s when the CIA wanted the model. I offered to run any study they wanted, but they said they had to own it. That’s when I learned we do not live in a free society. You say no to the government, and they could care less about the constitution.

Contempt requitrement
Feb 7 2000 No list or order for contempt

They held me in civil contempt without any charges or even an order. Supposedly, you are supposed to have a clear directive do this you you go to jail.  The judge did whatever the government wanted and publicly was shocked when he found out they never produce such an order. Legally, he should have released me, but did not. I was NEVER given any order to make sure I could never comply. They media never reported the truth, especially Bloomberg.

The when the bank pled guilty and was given a deal return all the money they stol and nobody would go to jail, so there were no remaining victims. In the end, I never had any restitution. But then the government outright lied, violated my civil rights openly in front of the world and the press remained silent. They they claimed there was another decades before and they kept me in contempt for another 5 years admitting there was no description of such a crime, but keep me in jail with not even a Theory.

Contempt No Description of fraud 1

I believe mainstream media was part of the scame and kept up the fake news to cover up their failed attempt to pull off a regime change in Russia, which is why I believe Hillary concocted the whole RussiaGate fake news.

Lebanon_1985 WEC

As far as the other issues, yes I advised the counter-revolutionary movement in Iran for they were trading futures to buy arms to overthrow the Ayatollah back then. Yes, it was the central bank of Lebanon that asks us to make a model on their currency and that opened the door where I came to discover how the computer was forecasting war. As far as attended OPEC meetings, that was being put on speakerbox not actually attending. Yes I did manage money for Kaddafi, twice, but unknowingly.

Well you must be talking to people who have been around for a long time in London. Yes, I taught the Arabs how to trade gold futures to make interest when they could not earn interest religiously. I gave the liquidity to get the gold futures off the ground. We were buying gold and then selling it forward, which in reality is the interest for carrying the trade. But it was not outright interest so religiously it worked. I restructured Middle East banks in similar ways.

Turkish Lira 1985

One of my more creative endeavors was the furst natural hedge I had to manufacture. I was called in by a major Middle East Bank who hired a top German banker to run the bank. The board was religious and said that they should open a branch in Turkey. The Turkish lira was in a steep bear market and they had to put up $10 million in escrow for one year until the license would be grated. They would have lost 90% of the money. The Turkish lira was not tradable in cash or futures. That’s why they called me in. I had to create a synthetic hedge to map the expected decline of the lira. I created a basket of other instrument to creat a synthetic nature hedge – the first ever such instrument created.

I did ny first billion deal in 1982. As my client put it, we were dealing in billions when Goldman was still in diapers. That’s also when the bankers were always afraid of me.

Yes, I roo listened to the 60 Mimutes interview of Netanyahu. They indeed glaced over his claims that Iran was a threat to the USA.

iranian Rial M Array 4 12 26

The computer is showing that we may have a serious change in the politics of Iran come Jan/Feb 2027. Nonetheless, we still see that something will shift going into June after Trump gets back from China.

Yes the media does backflips because they cannot report the truth about what took place in my case and the failed regime change without also admitted that they dropped the ball intentionally or were incompetent. That is why it may seem very strange how mainstream avoids our computer which is the only AI system in the world with nearly a 50 year track record.

As far as peace in the Middle East or even Ukraine, in both cases you are looking at deep seated hatreds on both sides. That is not negotiable with any permanent outcome..

Venezuela or Alberta as 51st State


Posted May 12, 2026 by Martin Armstrong |  

Part 51

QUESTION: Marty, I read on Zero Hedge that Trump was floating the idea of Venezuela becoming the 51st State. When you were here in Canada, you said the US would never let Alberta become the 51st State. Is this just more hype about Venezuela?

GS

ANSWER: Yes, it’s just words in the wind. The real story behind the curtain is that allowing Alberta to become the 51st State would mean the Democrats would insist that Puerto Rico and Guam become states. No matter who we consider, a state gets two senators plus representatives in the House, depending on population. This changes the political balance, and it will be a shit-fight to say the least.

The U.S. Constitution doesn’t require a national vote of all existing states to admit a new one, only under a specific set of “other states” those whose territory would be directly affected by the creation of the new state.

So there is far more at issue than just oil or resources. Redistricting just impact the House. A 51st State impacts the Senate.

President Trump Corrects the Record


Posted originally on CTH on May 13, 2026 | Sundance


There was much fake news about the tech and finance leaders traveling with President Trump to China.  Moments ago, President Trump corrects the record:

TRUTH SOCIAL – “CNBC incorrectly reported that the Great Jensen Huang, of Nvidia, was not invited to the incredible gathering of the World’s Greatest Businessmen/women proudly going to China. In actuality, Jensen is currently on Air Force One and, unless I ask him to leave, which is highly unlikely, CNBC’s reporting is incorrect or, as they say in politics, FAKE NEWS!

It is an Honor to have Jensen, Elon, Tim Apple, Larry Fink, Stephen Schwarzmann, Kelly Ortberg (Boeing), Brian Sikes (Cargill), Jane Fraser (Citi), Larry Culp (GE Aerospace), David Solomon (Goldman Sachs), Sanjay Mehrotra (Micron), Cristiano Amon (Qualcomm), and many others journeying to the Great Country of China where I will be asking President Xi, a Leader of extraordinary distinction, to “open up” China so that these brilliant people can work their magic, and help bring the People’s Republic to an even higher level! In fact, I promise, that when we are together, which will be in a matter of hours, I will make that my very first request. I have never seen or heard of any idea that would be more beneficial to our incredible Countries!”

~ President DONALD J. TRUMP

“Tim Apple” always cracks me up. lol

As previously noted and discussed by USTR Jamieson Greer, since the original trip to Beijing was announced several months ago, it was very easy to identify this visit was not a customary ‘state visit’ in the formal sense of the term.  Instead, this trip was always planned as a trade, finance and economic business trip specifically to engage Chairman Xi with a financial and investment focus.

U.K. Prime Minister Keir Starmer Survives Another Day Assisted by Pending King Charles III Speech to Parliament


Posted originally on CTH on May 12, 2026 | Sundance

British monarch King Charles III is scheduled to deliver the annual ‘king’s speech’ to the U.K Parliament on Wednesday, and that was the essential defense position of those who are trying to maintain embattled Prime Minister Keir Starmer in power as the Labour Party leader.

The king’s speech is an address to Parliament to outline his legislative priorities and the anticipated support from the political assembly. Without a solid Prime Minister in place, it would seem like an address to a leaderless body. However, once the speech is finished, the struggles for Prime Minister Starmer are soon to resurface.

British pundit Neil Oliver asked the most alarming question on GB News earlier this evening when he pondered who exactly does Keir Starmer work for? Noting very similar issues in both France and Germany with Emanuel Macron and Chancellor Freidrich Merz respectively, Oliver outlines how many EU leaders are pushing national policies while seemingly disconnected from the citizens of their countries. WATCH:

Oliver senses something bigger is afoot with the seismic shift in British electoral politics.  The nation is demanding a change in direction away from leftist policies.  When President Trump was asked about the dynamic earlier today, he said Keir Starmer needs to decide whether to leave or try and stay in power.  Dropping pretenses and speaking pragmatically, President Trump further pointed to the suicidal energy policies that are driving up the costs of living for all European citizens.

Via Daily Mail – […] On a dramatic day at Westminster, four Labour ministers resigned, saying they no longer had confidence in Sir Keir. The number of Labour MPs calling for him to go rose to 90, and Home Secretary Shabana Mahmood was forced to deny she is on the brink of quitting after telling the PM to set out a timetable for his departure. (more)

The unfortunate thing for the British voting population is that while they have completely rejected the Labour party in regional elections, the government itself is Labour party leadership.  If/when Prime Minister Starmer resigns, it is more than likely his replacement will be even further left than the position the voters already rejected.

VIA UK Politico – […]  Deputy Prime Minister David Lammy was urging colleagues Tuesday night to “step back, take a breath, remember that we have the king’s speech.” No wonder. People familiar with the matter told POLITICO that the king’s team had made clear to Starmer’s officials the importance of protecting Charles from any impression that he is being used for political ends in the Labour leadership fight. 

Charles, in words written by Starmer’s government, is due to announce more than 35 planned or draft bills including an immigration crackdown, health reform, digital ID, closer EU alignment and energy infrastructure. That whole agenda could all soon be junked by a different prime minister.

But no one quite knows if the full-blown leadership crisis will resume within hours or lie dormant for much longer.

The 90-plus MPs who have called for Starmer’s exit will never be able to un-say their statements. Starmer said the British people “expect the government to get on with the job of changing our country for the better” — but his own MPs increasingly believe that simply isn’t possible any longer.

One MP elected in 2024 said: “The trouble is even if he struggles on, we’re screwed … Keir basically knows that more than 90 people in his party think he’s doing a shit job.” (read more)

Extensive Chopper Presser – President Trump Delivers Impromptu Remarks Departing White House


Posted originally on CTH on May 12, 2026 | Sundance |

President Trump departed the White House today for a long-awaited trip to Beijing, China for a summit with Chairman Xi Jinping.  This trip to China is all business with no customary diplomatic venues or state visit festivities planned.  This trip is straight to Beijing, business – then depart.

As President Trump departs the White House, he walks the lengthy press pool line to answer questions.  The best audio/video is currently this one.

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Zelenskyy’s Chief of Staff Andrey Yermak Appears in Court to Face Stunning Charges of Corruption and Money Laundering


Posted originally on CTH on May 12, 2026 | Sundance

Andrey Yermak is not just some random high-level government official in Ukraine.  Andrey Yermak was President Zelenskyy’s right hand, chief of staff, organizer of the functions of Ukrainian government and the guy who controlled the systems that keep all other government officials working on the agenda of the President.

If you took Susie Wiles and Marco Rubio’s responsibilities and combined them into one job function, that would be the scale of importance and influence that Andrey Yermak controlled inside the Ukrainian government and the office of President Zelenskyy.

Left, Volodymyr Zelenskyy – Right, Andrey Yermak

Today, following an explosive criminal corruption charge that surfaced less than 36 hours ago, Andrey Yermak appears in court to face charges of corruption, theft and money laundering.  Yermak was under investigation for his role in theft through the energy sector and now stands accused of using construction projects near Kiev as a tool to launder money to himself and other high-level government officials.

There are three facets to this I find very interesting.  First, is the timing.  Second, is the often-overlooked admission by National Anti-Corruption Bureau of Ukraine (NABU) about them working closely with FBI investigators in Europe and American intelligence units.  Third, is the way they caught him: “The anti-corruption bureau shared part of a wiretapped conversation as part of its case and said six more people had been identified as suspects.”

(Via BBC) – […] For years he was a close friend of Zelensky, and led Ukraine’s talks with the US until an anti-corruption raid on his flat last November prompted his resignation.

Ukraine’s Anticorruption Prosecutor’s Office (Sapo) said it was asking the Kyiv court to either place him in preventive detention or give him bail of about $4m (£3m).  The head of the National anti-corruption bureau (Nabu) stressed that Zelensky himself was not part of the pre-trial investigation.

Yermak had been the president’s closest adviser throughout Russia’s full-scale invasion, until he became caught up in a broader inquiry by Sapo and Nabu into an alleged $100m (£74m) embezzlement scheme in Ukraine’s nuclear energy sector.

As part of Operation Midas, ex-Deputy Prime Minister Oleksiy Chernyshov was charged with abuse of office, while businessman Timur Mindich reportedly fled the country after he was flagged as a suspect and ex-Energy Minister Herman Haluschenko was detained while trying to leave.

Like Yermak, Mindich was once part of Zelensky’s inner circle and co-owned the president’s former TV studio Kvartal95, before sanctions were imposed on him. Mindich denies wrongdoing.

The latest claims center on an elite housing project called “Dynasty” in a village outside Kyiv where millions in construction funds were allegedly laundered. The anti-corruption bureau shared part of a wiretapped conversation as part of its case and said six more people had been identified as suspects. (read more)

On November 17, 2025, reports surfaced indicating that Yermak, then head of Zelensky’s office, might have been recorded by NABU. Subsequently, Yermak’s residence was searched on November 28, and by evening, Zelensky had dismissed him from his position.

Since late April, Ukrainian media outlets and parliament members have continued to publish new excerpts from the recordings. These reveal Mindich discussing with Rustem Umerov, the current Secretary of the Security Council and former Defense Minister, details of embezzlement from multimillion-dollar contracts, funding for drone manufacturing through a company affiliated with Mindich, and potential candidates for the Ukrainian ambassadorship to the United States.  Keep in mind, Rustem Umerov is the current lead negotiator and point of contact for U.S. peace efforts.

Russia Federation President Vladimir Putin suggested last weekend that the war in Ukraine was “coming to an end.”

Interesting timing.

FBI Director Kash Patel Appears Before Congress – 2:00pm ET Livestream


Posted originally on CTH on May 12, 2026 | Sundance |

Today, at 2:00pm FBI Director Kash Patel and Drug Enforcement Administration Administrator Terrance Cole will join other federal law enforcement officials to testify on the president’s 2027 budget request before a Senate Appropriations subcommittee.  Democrats are poised to push a narrative about Kash Patel’s personal habits driven by an Atlantic article accusing him of drunkenness and misbehavior.

While the focus of the appropriations testimony is the budget request, undoubtedly much of the questioning will surround ongoing matters and priorities of the FBI and DEA.  Recent events in Mexico related to indictments of government officials involved in drug trafficking may also be the subject of inquiry.  Could be interesting.  Testimony begins at 2:00pm ET.

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Former CIA Director John Brennan Says There are Still “Legions” of His Allies, Deep State Operatives, at DOJ, FBI and CIA


Posted originally on CTH on May 12, 2026 | sundance 

Appearing on MSNBC to talk to Lawfare ally Nicole Wallace, wife of New York Times narrative engineer Michael Schmidt – the guy who received leaks from FBI Director James Comey via Daniel Richman, former CIA Director John Brennan notes there are “legions” of operatives still embedded within the DOJ, FBI and CIA who are working against President Donald Trump.

This is not a surprise as we have noted the Trump administration continues to take apart the tentacles of Lawfare and Intelligence operatives in Main Justice, various U.S. Attorney offices, FBI Headquarters, FBI field offices and various Intelligence Community silos.

Marco Rubio has been working to clean up the National Security Council as well as the State Department operations, including USAID.  Tulsi Gabbard and John Ratcliffe have been working on the NSA and CIA collaboratively, and Todd Blanche has been working through the Dept of Justice.  FBI Director Kash Patel has removed about ten percent of the problem in his agency.

The core problem goes back to what we outlined on these pages {GO DEEP} and is not limited to those operatives who remain from the Obama/Biden era.  Some of the problems surface as a result of ‘republican’ voices recommending “sleeper cell” staff and sketchy personnel for positions in the administration. [I’ll put an example below]

One way to tell if the agency head or leader understands the challenge is by paying attention to how they talk about the agency’s mission objective.

Leaders like Marco Rubio and Tulsi Gabbard have openly acknowledged the problem and are actively tackling corruption within their ranks. Even John Ratcliffe has admitted his agency was politically weaponized and has taken steps to address it. There’s still a lot of work ahead, but their actions show visible progress.

People like Pam Bondi and Kash Patel have praised the institutional embeds without drawing attention to the corruption beneath them. Thankfully, Acting AG Todd Blanche seems to be taking a more confrontational approach internally, so maybe Kash Patel will follow suit. This isn’t about style—it’s about results, and there’s an urgent need for action.

To give an example of “sketchy” recommendations and predictable outcomes, I would draw attention to the lesser visible appointment of Morgan Ortagus.  Do you remember this very weirdly worded announcement, two weeks prior to the inauguration?

[SOURCE]

I have no idea who “them” is referencing in the announcement.

[…] “I’m not doing this for me, I doing it for them”

There were always three options for “them”: (1) the strong republican support people; or (2) people in the Middle East who would be dealing with her; or (3) Stephen Witkoff and Jared Kushner.  Regardless, of who “them” was, it was obvious President Trump was not thrilled by “their” request.

Mrs. Morgan Ortagus is a long time Deep State operative with roots in the U.S. intelligence community and USAID {citation}.  It was very predictable that she would undermine the goals of President Trump and she only lasted six months in the job.  Ortagus was quietly dispatched from her position in June 2025.

CTH predicted {SEE HERE} Mrs. Ortagus would be a big mistake because she was, quite frankly, one of the “legion” insiders referenced by former CIA Director John Brennan.  Ortagus’s entire career profile was/is textbook intelligence operative, likely legacy CIA.

Not coincidentally, former National Security Advisor Mike Waltz was removed from his position only a month before Ortagus lost hers.

On the day he was announced CTH said National Security Advisor Mike Waltz would be the first administration member to get the boot, because in the non-pretending world Waltz was a horrible choice just like Ortagus.  Mike Waltz was removed as National Security Advisor in May 2025, {citation} Ortagus was removed as Middle East envoy in June {citation}.

If the goal was to eliminate the Deep State, President Trump couldn’t take on a deeply corrupt Intelligence Community while also appointing its allies. Their close ties to the Intelligence Community made the failures of both Waltz and Ortagus predictable.

That said, behind the veneer of John Brennan’s statement on MSNBC is a guy who realizes the Trump administration has changed the dynamic and the agency systems Brennan is talking about no longer exist; at least they no longer have the same capabilities.

The need for control is a reaction to fear, and Brennan’s fear is both visible and very well founded.

The DOJ and FBI operate under the influence of the Intelligence Community, which ultimately holds the reins. The key figures leading the IC have made changes to the institutions that have significantly reduced the impact of bad actors within the DOJ and FBI.

The key positions are the National Security Advisor, the Secretary of State, the Office of the Director of National Intelligence and the Director of the Central Intelligence Agency.

Marco Rubio, Tulsi Gabbard and John Ratcliffe are the people to watch, and we can tell by the counsel(s) they have put into place that each of them has clear eyes and a steady hand on those critical institutions.

Since mid-year 2025, around the same time Waltz and Ortagus were dispatched, you will note significant changes began surfacing in the National Security Council, the State Dept, the DNI and importantly the CIA.  Some of the changes make headlines, many do not; however, each is important and builds on a larger goal of dismantling a highly weaponized and political intelligence apparatus.

Internationally, what we see in the reaction of allied -or oppositional- governments and their intelligence agencies, is in large part a geopolitical reaction to the consequential changes being made by Rubio, Gabbard and Ratcliffe.  Each building upon a system that fundamentally changes U.S. policy to be in alignment with President Trump.  Each of them should be commended.

Domestically, the accountability developments involving James Comey, John Brennan, John Bolton, Michael Atkinson, Eric Ciaramella and others yet to emerge, stem from the transparency brought by the same trio working upstream from Main Justice and the FBI. The combined intelligence apparatus of the U.S. can cut through the chaff and countermeasures of Lawfare operatives, and I feel optimistic watching them in action.

Again, it’s not just the silo heads that are making a positive impact, it is the personnel decisions they are surrounding themselves with.  The amount of sunlight now coming over the horizon is toxic to the interests of those who organized shadow operations.

As long as Rubio, Ratcliffe and especially Gabbard, keep pushing the truth to the surface; as long as they keep exposing all the corruption that was used to manipulate and weaponize our government; as long as they keep strategizing on ways to declassify evidence former officials buried under false pretenses; then the DOJ, FBI and more importantly We The People, will have information we can use to make decisions.

Ultimately, it is the truth which makes evil enterprise retreat.

WarRoom Live


Posted originally on Rumble on Bannon War Room on: May 11, 2026